DA Gascón Announces Charges in Mortgage Fraud Elder Abuse Case

FOR IMMEDIATE RELEASE
September 14, 2011

Contact:
Erica Derryck, DA Gascón Office, (415) 553-1167 office, (415) 740-5134 cell, erica.derryck@sfgov.org

DA GASCÓN ANNOUNCES CHARGES IN MORTGAGE FRAUD ELDER ABUSE CASE
INVOLVING A FAMILY OF DEFENDANTS

SAN FRANCISCO, CA – District Attorney George Gascón announced today the charging of Carlos and Karla Parada, a father and daughter, who allegedly defrauded a 71-year-old woman and her son in a mortgage fraud scheme. A third defendant, Geovanny Avendano was also charged as part of the alleged fraud.

“I know how hard families work to be able to afford a home,” said George Gascón. “To have someone from your own community take advantage of you, stealing your greatest asset in your old age and at a time of need, is simply deplorable.”

Specifically, Carlos Parada is charged with Conspiracy (1 Count), Grand Theft (4 Counts), Elder Abuse (4 Counts), Money Laundering (2 counts), First Degree Burglary (1 count), Aggravated White Collar Enhancement (as to all counts), and Excessive taking allegations.

Karla Parada is charged with Conspiracy (1 Count), Grand Theft (3 Counts), Elder Abuse (3 Counts), Money Laundering (2 counts), First Degree Burglary (1 count), Aggravated White Collar Enhancement (as to all counts), and Excessive taking allegations

The third defendant, Geovanny Avendano is charged with Conspiracy (1 Count), Grand Theft (1 Count), Elder Abuse (1 Count), Money Laundering (1 count), Aggravated White Collar Enhancement (as to all counts), and Excessive taking allegations.

According to court documents, Carlos Parada, licensed real estate broker, presented himself to the widowed victim as a member of the clergy. The defendant and his daughter allegedly urged the victim to sell her home, which was in her son’s name, so she would have sufficient funds to bury her deceased husband.

During the course of the sales transaction, Carlos Parada and Karla Parada are alleged to have falsified debt notes in order to divert cash to themselves and their co-conspirator Geovanny Avendano. Through these false debt notes, Carlos and his daughter Carla Parada, are believed to have diverted $100,000.00. The money was transferred to a company owned by Geovanny Avendano, the third defendant charged in this case. Of the $100,000 transferred to Geovanny Avendano, approximately $90,000.00 was allegedly funneled back into Carla Parada’s bank account. Carla Parada then is believed to have transferred some of the stolen funds back to her father.

It is further alleged that Carlos Parada convinced the victim to give him $65,000 of the proceeds the victim received from the sale of her home for investment purposes. However, the victim did not receive any dividends from the alleged investment, nor was principal amount returned to her.

The primary victim in this case, is a monolingual Spanish-speaker. Her son signed the necessary documents for the sale at the direction of his mother, who trusted the defendants. These crimes are alleged to have occurred over a four-month period beginning in September 2006.

The primary defendants, Carlos and Karla Parada are the brother and niece of Edwin Parada, a former real estate broker, who is currently awaiting preliminary hearing on 16 felony counts related to an alleged mortgage fraud and investment scam in which the defendant is charged with targeting Spanish-speaking homeowners in San Francisco. This is in addition to a separate case in which Edwin Parada is also facing trial on eight felony charges. His next court date is October 7, 2011. In total Edwin Parada is alleged to have harmed 31 different victims, defrauding them of $2.2 million dollars. Edwin Parada was arrested on a District Attorney’s warrant on July 23, 2008 in San Francisco, California, by members of the San Francisco Police Department and was immediately taken into custody.

Carlos Parada turned himself into authorities on September 12, 2011. Geovanny Avendano turned himself in on September 13, 2011. Karla Parada is still at large with a warrant for her arrest outstanding. The Honorable Nancy Davis arraigned Carlos Parada on September 13, 2011 and kept bail at $2.6 million. Judge Davis set this case on September 14, 2011 in Department 20 to determine the dates of the preliminary hearing. Judge Davis also set the case in Department 9 on Friday, September 16, 2011 for a bail hearing. The arraignment of Geovanny Avendano, originally scheduled for Wednesday, September 14, 2011 in Department 9 at 1:30pm has been put over until Thursday, September 15, 2011 at 9am in Department 9.

The prosecution of Carlos Parada, Karla Parada and Geovanny Avendano is the result of an investigation by San Francisco Police Department Inspector Robert Steger. Sandip Patel is the Assistant District Attorney prosecuting the case.

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